Key Points of Amendments in the Revision of the Traffic Law

The Government is currently in the process of revising Law No. 22 of 2009 on Road Traffic and Transportation (“LLAJ Law”), with the revision targeted for completion this November. The revision will allocate responsibilities more equitably among shippers, forwarders, and transporter.

“The government’s plan to revise the LLAJ Law is expected to be enacted by November,” said the Deputy for Coordination of Connectivity at the Coordinating Ministry for Infrastructure and Regional Development, Odo R. M. Manuhutu.

In contrast to the current regulatory framework, which fully leaves pricing to market mechanisms, one of the proposed amendments introduces the application of upper and lower tariff limits for freight transportation. The Director General of Land Transportation at the Ministry of Transportation, Aan Suhanan, stated that a study is currently being prepared based on three variables, namely tonnage, cubic capacity, and distance or trip length.

“This is currently being formulated so that a middle ground can be reached regarding the determination of upper and lower tariff limits; however, this will also depend on the revision of the Traffic Law,” concluded Aan Suhanan